CONSUMER IDENTITY VERIFICATION

Illinois General Assembly - Full Text of HB4538

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Full Text of HB4538

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HB4538 - 104th General Assembly

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HB4538 Engrossed
LRB104 17029 SPS 30444 b
1

AN ACT concerning business.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
5
Identity Verification for Consumer Services Act.

6

Section 5.
Purpose.
The purpose of this Act is to protect
7
Illinois residents from identity theft by establishing
8
mandatory identity verification standards before allowing the
9
issuance of services that involve personal identifying
10
information, including credit services, telecommunications,
11
utilities, online platforms, healthcare access, and government
12
benefit systems.

13

Section 10.
Definitions.
As used in this Act:
14

"Covered service" means any utility, telecommunications,
15
credit account, online financial account, government benefit,
16
or other service that uses personal identifying information to
17
authorize access or extend service to those accounts or
18
benefits. "Covered service" includes any service that involves
19
a high-risk transaction. "Covered service" does not include
20
any public utility as defined in Section 3-105 of the Public
21
Utilities Act, alternative retail electric supplier as defined
22
in Section 16-102 of the Public Utilities Act, or alternative

HB4538 Engrossed
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LRB104 17029 SPS 30444 b
1
gas supplier as defined in Section 19-105 of the Public
2
Utilities Act.
3

"High-risk transaction" means any transaction involving
4
the transfer of funds, issuance of credit, remote access to
5
financial records, or any financial service activation that
6
may expose personal identifying information.
7

"Identity theft" means the unauthorized acquisition and
8
use of personal identifying information to fraudulently obtain
9
credit, benefits, or services.
10

"Identity verification" means the process of verifying a
11
person's identity using 2 of the following forms of
12
authentication:
13

(1) valid, government-issued photo identification;
14

(2) proof of address, such as a recent utility bill,
15

bank statement, or rental lease;
16

(3) biometric data, such as a fingerprint or facial
17

scan;
18

(4) secure digital verification through multi-factor
19

authentication; or
20

(5) knowledge-based authentication.
21

"Personal identifying information" includes, but is not
22
limited to, full name, date of birth, social security number,
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driver's license or State identification card number, passport
24
number, biometric identifiers, physical address, email
25
address, telephone number, financial account numbers,
26
insurance policy numbers, and medical or health-related

HB4538 Engrossed
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LRB104 17029 SPS 30444 b
1
information.

2

Section 15.
Identity verification requirements.
An entity
3
that engages in a high-risk transaction involving a covered
4
service shall use identity verification to verify a person's
5
identity before initiating or modifying an agreement to
6
provide the covered service.

7

Section 20.
Recordkeeping.
An entity that provides a
8
covered service shall securely retain a record of the
9
documentation collected under the identity verification
10
process required under Section 15 for 3 years after the
11
identity verification or as long as needed for identity
12
verification purposes.

13

Section 25.
Exemptions.
The following are exempt from the
14
requirements of this Act:
15

(1) services exclusively performed using in-person
16

physical identification checks;
17

(2) services for individuals under the age of 13 with
18

verified parental consent, as required under State and
19

federal law;
20

(3) entities that are already subject to more
21

stringent federal identity verification regulations,
22

including, but not limited to, the customer identification
23

program regulations adopted by the Financial Crimes

HB4538 Engrossed
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LRB104 17029 SPS 30444 b
1

Enforcement Network of the United States Department of the
2

Treasury;
3

(4) the Early Intervention Program when acting in
4

accordance with 89 Ill. Adm. Code 500 and regulations
5

adopted under Part C of the Individuals with Disabilities
6

Education Act (34 CFR 303.112(b)) for the purpose of
7

verifying identities; and
8

(5) the Child Care Assistance Program when acting in
9

accordance with 89 Ill. Adm. Code 500 and regulations
10

adopted under the Child Care and Development Block Grant
11

Act (45 CFR 98.20(c)) for the purpose of verifying
12

identities.

13

Section 30.
Enforcement.
A violation of this Act
14
constitutes an unlawful practice under the Consumer Fraud and
15
Deceptive Business Practices Act. All remedies, penalties, and
16
authority granted to the Attorney General by the Consumer
17
Fraud and Deceptive Business Practices Act shall be available
18
to the Attorney General for the enforcement of this Act.

19

Section 35.
Whistleblower protections.
Any employee or
20
agent of an entity that provides a covered service in this
21
State who reports in good faith the entity's noncompliance
22
with this Act shall be protected under the Whistleblower Act.

23

Section 40.
Home rule.
A home rule unit may not regulate

HB4538 Engrossed
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LRB104 17029 SPS 30444 b
1
identity verification in a manner inconsistent with the
2
regulation by the State of identity verification under this
3
Act. This Section is a limitation under subsection (i) of
4
Section 6 of Article VII of the Illinois Constitution on the
5
concurrent exercise by home rule units of powers and functions
6
exercised by the State.

7

Section 90.
The Consumer Fraud and Deceptive Business
8
Practices Act is amended by adding Section 2MMMM as follows:

9

(815 ILCS 505/2MMMM new)
10

Sec. 2MMMM.
Violations of the Identity Verification for
11
Consumer Services Act.
Any person who violates the Identity
12
Verification for Consumer Services Act commits an unlawful
13
practice within the meaning of this Act.

14

Section 99.
Effective date.
This Act takes effect January
15
1, 2027.

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